Workers face cuts or job loss

Workers at the Addis plant have a week to decide

Workers at a household products plant in Swansea are facing redundancy if they refuse to take a pay cut and holiday entitlement.

The 300 staff at the Addis factory on the Swansea industrial estate have a week to decide whether they will accept the deal.

It is understood the firm has suffered losses of up to £1m in the past six months and the company's German owners are the taking action to prevent it continuing.

Union members are now due to hold a meeting on Sunday to agree how they will respond.

A spokeswoman for the company said the steps had been taken in an attempt to save the company rather than close the factory down.

She told the BBC the managing director, John Newcom, was also taking a pay cut.

Payments

The problems have been blamed on a new computer system, a drop in orders and the effect of the exchange rate.

All staff, including managers, are being asked to agree a five-day cut in their holiday allowance, a 5% pay cut, and lose sick pay and company pension payments.

In addition, managers will also lose healthcare and private fuel allowances.

The spokeswoman added Mr Newcom, who has been the MD for nine years, was taking the course of action very seriously, and said the company believed the chances of strike action were "unlikely".